Earlier research indicates that the elderly concentrate in certain parts of metropolitan areas. This research utilizes an interview survey to investigate the mental health impact of residential segregation of the aged, comparing older residents of age-integrated and age-segregated neighborhoods in the Albany-Schenectady-Troy, N.Y., SMSA. It is hypothesized that residential age segregation results in more viable localized social networks for the elderly. Consequences include heightened social integration, socialization by age peers concerning the meaning of old age, increased knowledge of and referral to community services, bolstered coping ability, and more favorable psychological well-being. The impact of residential age structure is expected to vary by health, socio-economic status, and other personal characteristics. The project will enhance knowledge of the nature and consequences of age-segregated residential settings, and the impact of housing and neighborhood factors on the mental health and well-being of the aged. Policy implications include bolstering of localized support networks as alternatives to formal services, and policy emphases on older people who lack informal community support within their neighborhoods.